Proposed Australian Tax Residency Rules
Australia is to replace its tax residency rules for individuals with a primary so-called ‘bright line’ test.
If you are coming to Australia or going overseas, you may need to work out your residency for tax purposes. You can use the residency tests to work out if you’re:
We don’t use the same rules as the Department of Home Affairs (formerly known as the Department of Immigration and Border Protection). This means you:
- can be an Australian resident for tax purposes without being an Australian citizen or permanent resident
- may have a visa to enter Australia but are not an Australian resident for tax purposes.
For a summary of key information about residency status, download Residency for tax purposes (PDF, 1.03MB)This link will download a file.
On this page:
Residency tests
There are statutory tests to determine your residency:
You can also use our Work out your residency status for tax purposes tool to help work out your residency.
Resides test
The primary test of tax residency is called the resides test. If you reside in Australia, you are considered an Australian resident for tax purposes and you don’t need to apply any of the other residency tests.
Some of the factors that can be used to determine residency status include:
- physical presence
- intention and purpose
- family
- business or employment ties
- maintenance and location of assets
- social and living arrangements.
If you don’t satisfy the resides test, you’ll still be considered an Australian resident if you satisfy one of three statutory tests.
Domicile test
You’re an Australian resident if your domicile (the place that is your permanent home) is in Australia, unless we are satisfied that your permanent place of abode is outside Australia.
A domicile is a place that is considered to be your permanent home by law. For example, it may be a domicile by origin (where you were born) or by choice (where you have changed your home with the intent of making it permanent).
Find out about:
183-day test
This test only applies to individuals arriving in Australia. You will be a resident under this test if you’re actually present in Australia for more than half the income year, whether continuously or with breaks.
Find out about:
The Commonwealth superannuation test
This test applies to Australian Government employees working at Australian posts overseas and who are members of the CSS or PSS schemes. It does not apply to members of the PSSAP scheme. If this is the case, you (and your spouse and children under 16) are considered to be a resident of Australia regardless of any other factors.
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